How Obamacare and Molina Healthcare equal a boost for downtown Long Beach: Editorial

The Affordable Care Act may actually be a boon to downtown Long Beach.

Still emerging from a deep economic slump, city officials have been pushing hard to revitalize the area — pumping in millions of tax dollars, changing zoning rules, applying for grants and wooing businesses.

There’s been success, with clusters of small shops emerging in the East Arts District and more development. But so far it hasn’t been able to attract enough folks to turn downtown around, back to its heyday of the mid-20th century when the streets teemed with folks shopping and venturing downtown on the weekends.

Now enters Molina Healthcare.

The firm is one of 13 California companies selected to offer insurance through Covered California, the state-run insurance exchange program.

This year the company signed a lease for the former Press-Telegram building on Pine Avenue for $2.6 million a year and the historic Meeker-Baker building, which is estimated to lease for $4 million next year. CFO John Molina and his wife Michelle are principals on both.

As reporter Andrew Edwards pointed out, the boost to Molina’s business is fueling its growth into the city’s core.

By next year hundreds of Molina workers will bring their dollars to the small restaurants and boutiques that have popped up around the area. That’s good for local business and could even attract others downtown.

As much as the core’s economy will benefit, so too will Molina Healthcare.

A city plan passed last year eased restrictions on developing downtown in a bid to spur business. The first to benefit from this was the Meeker-Baker building, according to city officials.

Under the downtown plan, Molina didn’t have to go through an environmental plan that can be expensive and take long. The company could also build up to 240 feet, about 20 stories, although the building will not be that high. Downtown developers also don’t have to provide as many parking spaces as other developers.

The plan is supposed to encourage a dense, vibrant city. And it looks like Molina, which supported the plan, will try to see that it does.